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There’s a New No-Fee 2% Credit Card in Town

May 4, 2017
Credit Cards, Promos, Rewards Credit Cards
Credit card 2% cash back
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It’s a real Cinderella story: A plain credit card with an unremarkable 1% rewards rate transforms into a beautiful 2% card and turns heads.

Alliant Credit Union has announced that the Alliant Visa Platinum Rewards Card now earns an unlimited 2 points per dollar spent, up from 1 point per dollar spent. Points are worth 1 cent each when redeemed for cash back, giving the card an effective 2% rewards rate. Points can also be redeemed for merchandise, gift cards, charity and travel. The annual fee remains $0.

The card also offers other perks:

  • As low as 0% introductory annual percentage rate for 12 billing cycles on purchases and balance transfers, depending in part on your creditworthiness
  • 5,000-point bonus after spending $500 in the first three billing cycles, making it worth $50 at a penny a point.

If you can qualify for the 0% APR offer, the improved Alliant card is an especially good deal. It’s uncommon to see both a 0% purchase APR offer and a sign-up bonus — even a small one —  on 2% no-fee cards from major issuers. The Citi® Double Cash Card – 18 month BT offer, for example, lacks both.

The improvements on the Alliant Visa Platinum Rewards Card come soon after the credit union debuted a 2.5% cash-back card with an annual fee of $59, another deal that outshines the competition. Between the two cards, the 2.5% card would be a better match if you charged more than $11,800 a year.

As is the case with most credit unions, you need to be a member of Alliant to qualify for its credit cards. If don’t meet the eligibility guidelines, you can become a member by contributing to Foster Care to Success.

A previous version of this story misstated the terms for the 0% offer. It has been corrected.

Claire Tsosie is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @ideclaire7.